Louisiana state agencies hit hard by federal cuts

Published 11:22 am Wednesday, April 2, 2025

By Nola McKendry | The Center Square

Federal cuts are having a large effect on Louisiana state agencies such as the Louisiana Department of Wildlife and Fisheries ahead of the upcoming legislative session when lawmakers will craft next year’s budget.

The House Appropriations Committee met this week to review budget requests from state agencies.

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The Louisiana Department of Wildlife and Fisheries is facing a sharp budget reduction, with a total request of $199.4 million — down $94 million from previous levels.

This decline is mainly due to a $71 million drop in federal funds, including a $39.1 million cut from previously allocated funds and a $28.9 million reduction from the National Oceanic and Atmospheric Administration.

Statutory dedications are also down by $48.5 million, though the state general fund contribution is increasing by $30 million to help offset losses. The LDWF has 786 authorized positions, with 67 vacancies as of December 2024, and continues to struggle with a declining Conservation Fund balance.

The Department of Energy and Natural Resources is excepting a $15 million drop in federal funding due to delays in receiving Infrastructure Investment and Jobs Act (IIJA) grants. Paige Philyaw, a House budget analyst, attributed the shortfall to bureaucratic holdups in the IIJA, a bill passed under former President Joe Biden.

The proposed budget includes $115.5 million in federal funds, $26.19 million from the state’s general fund—a $10.9 million cut—and $48.25 million in statutory dedications. The department’s 364 positions are supported by these funds, and the reductions raise concerns about potential impacts on energy and environmental programs statewide.

The Louisiana Department of Environmental Quality is requesting $155.2 million, with the majority coming from self-generated revenue.

The budget allocates $63 million to Management and Finance, $37 million to Environmental Assessment, and $28 million to Environmental Compliance.

However, the department faces a $6.2 million reduction in self-generated revenue and a $1.6 million decrease in state general fund contributions due to funds no longer needed in fiscal 2026. As of Dec. 30, 2024, LDEQ reported 48 vacant positions.

The Louisiana Department of Civil Service is requesting $27.08 million, sourced from $5.9 million in state general funds, $17 million in interagency transfers, and $4.17 million in fees and self-generated revenue.

Major allocations include $15.4 million for State Civil Service, $3.18 million for Municipal Fire and Police Civil Service and $5.2 million for Ethics Administration.

The department is also seeking an additional $363,000 for two new positions: A law clerk and a deputy clerk.

These budget proposals will undergo legislative review before final approval, as agencies navigate funding challenges and shifting revenue sources. The committee is scheduled to meet next on April 14.